Department for Energy Security and Net Zero

Energy Prices Act 2022 and Expenditure on Energy Schemes – Q2 and Q3 2023

Claire Coutinho: I am tabling this statement to update Hon. Members under the Energy Prices Act 2022, in line with the requirement under the Act for quarterly reporting to Parliament on expenditure incurred under it.This is the third report on energy scheme expenditure under section 14 of the Act and covers the quarters from 1 April to 30 June 2023 and 1 July to 30 September 2023.Energy prices are volatile, and changes will affect the outturn cost of the schemes. The Government has prioritised support for those most in need, whilst ensuring we act in a fiscally responsible way.Since Putin’s illegal invasion of Ukraine caused energy bills to rise, the government has stepped in with more than £40bn of financial support. Over £43 billion was spent between October 2022 and September 2023, the most ever provided to subsidise household bills in UK history. This was in part funded through taxing energy producers’ excess profits - with the government’s windfall tax on producers expected to raise over £26 billion by March 2029.[1]Government support schemes covered nearly half of household energy bills between October 2022 and June 2023, saving households £1,500 on average.[2]Expenditure incurred£ma) Expenditure incurred between 1 April – 30 June 23a) Expenditure incurred between 1 July to 30 September 23b) Cumulative expenditure incurred to 30 September 23Energy Bills Support Scheme GB & NI3011,873Energy Bills Support Scheme Alternative Funding23262Energy Price Guarantee GB & NI2,3075823,364Domestic Alternative Fuel Payment(27)(3)589Energy Bills Relief Scheme GB & NI1,8561087,522Energy Bills Discount Scheme GB & NI2589114Energy Bills Discount Scheme Heat Networks GB & NI11516Non-Domestic Alternative Fuel Payment5(5)62Heat Networks Alternative Dispute Resolution bodies0.200.2 Future costsForecasts of FY23-24 (1 April 2023 – 31 March 2024) expenditure for the energy schemes were published by the Office for Budget Responsibility on 22nd November 2023 as part of the Autumn Statement 2023. The forecasts provided were: £4.3bn for the Energy Price Guarantee, including Prepayment Meter Levelisation, and £0.6bn for Non-Domestic energy support, including Energy Bills Relief Scheme, Energy Bills Discount Scheme and Energy Bills Discount Scheme heat network support.The costs in FY23-24 for other energy support schemes are expected to be net cash returns from suppliers and Local Authorities. This includes the Energy Bills Support Scheme, Energy Bills Support Scheme Alternative Funding, the Domestic Alternative Fuel Payment, and the Non-Domestic Alternative Fuel Payment.Separately, the forecast for Heat Networks Alternative Dispute Resolution bodies funding is £0.2m.All forecasts are provided on an accruals basis. Ongoing work on the reconciliation of scheme costs may impact FY23-24 and FY24-25 forecasts.To note:Figures for expenditure incurred are on a cash basis. This includes payments made by the Department for Energy Security and Net Zero to energy suppliers, Local Authorities and other scheme operators.Where the Department has received net cash back from energy suppliers or Local Authorities as part of the reconciliation of energy schemes, this is shown by a negative cash figure.Some expenditure incurred in FY23-24 may relate to FY22-23. Therefore, forecasts for FY23-24 may be lower than expenditure incurred in FY23-24.The Energy Bills Support Scheme in Great Britain was not made under the powers conferred by the Energy Prices Act 2022, but it is included for completeness.Heat Networks Alternative Dispute Resolution bodies funding utilises the power conferred by section 13 of the Energy Prices Act 2022. This funding is separate to the Energy Bills Discount Scheme heat network support.Administrative costs are not included in figures. [1] DESNZ, Press Release, 8 June 2023[2] Hansard, 13 November 2023, link

Department for Education

Early Years Update - Early Years Foundation Stage Safeguarding and Experience Based Routes

David Johnston: This Government is delivering a brighter future for Britain, with long-term economic security and opportunity: where hard work is always rewarded; where ambition and aspiration are celebrated; where young people get the skills they need to succeed in life and where families are supported.We are rolling out the largest expansion of childcare and early education in England’s history. From this month, eligible working parents will access the first 15 hours of funded childcare each week for their 2-year-olds. In September they will be able to access 15 hours each week for their 9-month-olds. From September 2025 all eligible parents will have access to 30 hours free childcare for children aged 9 months all the way until they start school.At the beginning of April, we exceeded our target of 150,000 children benefitting from the new two-year-old entitlement. As of today, this stands at over 195,000. By September 2025, the full rollout will be completed – saving parents an average of £6,900 per year.With the action government is taking, we will ensure that parents can benefit from more affordable childcare, making it easier to return to work or increase their hours.Experience-based route (EBR) consultation Last year, the government consulted on proposed changes to the Early Years Foundation Stage (EYFS) statutory framework. This included the introduction of an ‘experience-based route’ for early years staff who do not have the required full and relevant qualifications, but are otherwise experienced, competent and responsible, to work within the staff:child ratios. This proposal received strong support as a means to help childcare providers make the best use of the skills and experience of the workforce so that they can deliver on the childcare expansion, and in its response to the consultation the Department noted its intention to develop this route.Today 22 April we launched a technical consultation setting out the Department’s proposals on how the experience-based route could work in practice, ensuring that high-quality education and care is maintained. The consultation asks questions on the proposed decision-making model, eligibility criteria, and process requirements..We know that to deliver the commitments announced at Spring Budget 2023, the early years workforce will require additional staff. Our strategy to support the workforce is clear – to enable providers to better utilise the skills of their existing workforce, to attract talented staff into the sector and maximise the skills pipeline into the early years workforce.Safeguarding consultation launch The safety of children is our utmost priority and we continually monitor and review safeguarding requirements for early years settings to make sure children are kept as safe as possible. As the early education and childcare sector expands, we want to continue to support early years practitioners to deliver high-quality and safe provision to millions of children each day.Today 22 April, we launched a consultation on proposals to deliver changes to the safeguarding requirements in the Early Years Foundation Stage (EYFS) statutory framework. This is the framework that sets the standards that all early years providers must meet to ensure that children learn, develop well and are kept healthy and safe. The safeguarding proposals have been informed by extensive engagement with providers, health professionals, sector stakeholders and safeguarding experts, and using lessons learned from previous incidents.I have seen first-hand the excellent practices that providers have in place to keep children safe. Many are already carrying out what we are proposing in the consultation in their settings. It is my intention to ensure that all practitioners have the knowledge and support they need to deliver the safest, highest quality early education and childcare provision possible.Through both consultations, we hope to hear from as many people and organisations as possible so we can gather a broad range of views to help the Government reach well-informed and fair decisions.